Will India's Power Generation Capacity Reach 870 GW by 2031-32?

New Delhi, Aug 7 (NationPress) As of June 2025, India's installed electricity generation capacity stands at 485 GW. The government has set an ambitious target to increase this capacity to approximately 870 GW by the year 2031-32 to accommodate the escalating power demands within the nation, as indicated in a report to Parliament last Thursday.

The surge in electricity demand is attributed to the country's rapid economic advancement, increased household electrification, urban expansion, enhanced living standards, and the rising adoption of energy-intensive devices such as air conditioners and electric vehicles, according to Minister of State for Power, Shripad Naik, in a written response to a question posed in the Lok Sabha.

The Centre anticipates that the requirement for thermal (coal and lignite) capacity will reach approximately 307,000 MW by 2034–35, as opposed to the 211,855 MW of installed capacity recorded on March 31, 2023. To fulfill this demand, the Ministry of Power plans to establish an additional minimum of 97,000 MW of coal and lignite-based thermal capacity, as stated by the minister.

Since April 2023, around 11,680 MW of thermal capacity has been commissioned until June 2025, with 38,935 MW currently under construction. Additionally, contracts for 15,440 MW of thermal capacity have been awarded in FY 2024-25 and are slated for construction. The minister further noted that 35,460 MW of coal and lignite-based candidate capacity has been identified, currently at various planning stages throughout the country.

The minister also highlighted that 13,463.5 MW of hydroelectric projects are under construction, while an additional 9,802 MW of hydroelectric projects are at different planning stages, expected to be completed by 2031-32.

Furthermore, 6,600 MW of nuclear capacity is currently under construction with a target completion by 2029-30, along with another 7,000 MW of nuclear capacity in various planning and approval stages.

In the renewable sector, 158,450 MW of capacity is under construction, comprising 74,150 MW of solar, 30,080 MW of wind, and 53,750 MW of hybrid power. Additionally, 62,000 MW of renewable capacity—comprising 46,010 MW of solar and 15,990 MW of hybrid power—is at various planning stages, aiming for completion by 2029-30.

Naik emphasized that within energy storage systems, 8,250 MW/49,500 MWh of pumped storage projects (PSPs) are currently under construction. Moreover, a total of 5,780 MW/34,680 MWh capacity of PSPs have been agreed upon but not yet initiated. Out of these, 3,500 MW/21,000 MWh capacity of PSPs are in the bidding process, while 15,829 MW/51,106 MWh of battery energy storage systems (BESS) are undergoing various stages of construction and bidding.